Amgen 2009 Annual Report Download - page 37

Outside the United States, with the exception of China and Japan, J&J was granted rights to manufacture
and commercialize recombinant human erythropoietin as a human therapeutic for all uses under a licensing
agreement with KA. With respect to its sales outside of the United States, J&J manufactures and commercializes
its own brand of Epoetin alfa which is then sold by a subsidiary of J&J under various trademarks such as
EPREX®and ERYPO®. We are not involved in the manufacture of Epoetin alfa sold by J&J outside of the Unit-
ed States.
Pfizer Inc.
Amgen and Pfizer are in a collaboration agreement to co-promote ENBREL in the United States and Cana-
da. The rights to market ENBREL outside of the United States and Canada are reserved to Pfizer. Under the
agreement, a management committee comprised of equal representation from Amgen and Pfizer is responsible
for overseeing the marketing and sales of ENBREL, including strategic planning, the approval of an annual mar-
keting plan, product pricing and the establishment of a brand team. The brand team, with equal representation
from each party, prepares and implements the annual marketing plan, which requires a minimum level of finan-
cial and sales personnel commitment from each party, and is responsible for all sales activities. Further, pursuant
to the co-promotion agreement, Pfizer and Amgen each pay a defined percentage of all selling and marketing ex-
penses approved by the joint management committee. In addition, we pay Pfizer a percentage of the annual gross
profits on our ENBREL sales in the United States and Canada attributable to all approved indications for EN-
BREL on a scale that increases as gross profits increase; however, we maintain a majority share of ENBREL
profits.
GlaxoSmithKline plc
In July 2009, we entered into a collaboration agreement with GSK for the commercialization of our late-
stage product candidate, denosumab, in Europe, Australia, New Zealand and Mexico (the “Primary Territories”)
for osteoporosis indications. We will commercialize denosumab for all indications in the United States and
Canada and for oncology indications in the Primary Territories. GSK will commercialize denosumab for all in-
dications in countries where we do not currently have a commercial presence, including China, Brazil, India,
Taiwan and South Korea (the “Expansion Territories”). In the Expansion Territories, GSK will be responsible for
all development and commercialization costs and will purchase denosumab from us to meet demand. We have
the option of expanding our role in the commercialization of denosumab in the Primary Territories and certain of
the Expansion Territories in the future. In the Primary Territories, we will share equally in commercialization
profits and losses related to the collaboration after accounting for expenses, including an amount payable to us in
recognition of our discovery and development of denosumab that will decline as certain sales thresholds are met.
GSK will also be responsible for bearing a portion of the cost of certain specified development activities.
Takeda Pharmaceutical Company Limited
In February 2008, we entered into a collaboration agreement with Takeda Pharmaceutical Company Limited
(“Takeda”), which provides them the exclusive rights to develop and commercialize for the Japanese market up
to 12 clinical stage molecules, including Vectibix®, from our pipeline across a range of therapeutic areas, includ-
ing oncology and inflammation. We have the right to participate in the promotion of these products in Japan. In
addition, we entered into a collaboration agreement with Takeda for the worldwide development and
commercialization of our product candidate motesanib in the oncology area. Each party has the right to partic-
ipate in the commercialization of motesanib in the other party’s territory.
Daiichi Sankyo Company, Limited
In July 2007, we entered into a collaboration and license agreement with Daiichi Sankyo, which provides
them the exclusive rights to develop and commercialize our late-stage product candidate, denosumab, in Japan in
PMO, oncology and certain other indications. As part of the agreement, Amgen received exclusive worldwide
rights to certain Daiichi Sankyo intellectual property to the extent applicable to denosumab.
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